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What is PMJDY?
Pradhan Mantri Jan Dhan Yojana (PMJDY) is the Government of India’s financial inclusion program aimed at bringing every household into the formal banking system. Launched on 28 August 2014, PMJDY scheme focuses on providing a basic bank account, access to credit, insurance, pension, and improving overall financial literacy for citizens who previously had no access to banking services.
PMJDY plays a crucial role in connecting unbanked individuals especially low-income families with essential financial services. It also serves as a base for several social security schemes such as PMJJBY, PMSBY, PMMY, and APY, helping beneficiaries access insurance, accidental cover, small loans, and pension benefits through a single platform.
This blog explains PMJDY features, eligibility, benefits, and purpose of Pradhan Mantri Jan Dhan Yojana.
Benefits of Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Access to Government Schemes: When you have a PMJDY account, you become eligible for various government welfare schemes like life insurance (Pradhan Mantri Jeevan Jyoti Bima Yojana), accident insurance (Pradhan Mantri Suraksha Bima Yojana), and support for small businesses (Micro Units Development & Refinance Agency Bank scheme – MUDRA scheme).
- Banking Access for Everyone: PMJDY opens basic savings accounts for people who didn’t have one before
- No Minimum Balance Requirement: You don’t need to keep a minimum balance in your PMJDY account.
- Rupay Debit Card: You’ll receive a special Rupay Debit card when you open a PMJDY account.
- Insurance Coverage: If you have this card, it comes with insurance. If something unfortunate happens to you, like an accident, you could receive money to help, up to Rs. 1 lakh. For new PMJDY accounts opened after August 28, 2018, it’s even higher, up to Rs. 2 lakh.
- Earn Interest: The money you deposit in your PMJDY account earns you some interest.
- Receive Government Benefits: Your PMJDY account can receive government subsidies and grants directly.
- Invest and Save: You can easily buy insurance and pension products
- Overdraft Facility: Allows you to access extra funds instantly in financial emergencies.
- Benefits for PM Garib Kalyan Yojana: This scheme, announced in March 2020, offers women account holders Rs. 500 monthly for three months.
Who can apply for a PMJDY account?
- You need to be an Indian citizen.
- Applicant must be at least ten years.
- You shouldn’t already have a bank account.
- If a minor above ten years applies for a PMJDY account, they must have a legal guardian to help manage and operate the account.
Non-Eligibility Criteria for Pradhan Mantri Jan Dhan Yojana (PMJDY)
- People working for government-owned entities like banks and companies, along with their families, are not eligible.
- If you pay income tax under the Act of 1961 or file income tax returns, you’re not eligible, along with your family.
- If you are already covered by the Aam Aadmi Bima Yojana for specific jobs(48 defined under the scheme) ), you can’t join either, along with your family.
- If you already have life insurance through another bank scheme, you have to choose one or the other; you can’t have both.
How to Open a Jan Dhan Yojana Account?
- First, you’ll need to get an application form to open a Jan Dhan Yojana Account. You can find this form in both English and Hindi on the official PMJDY website (https://www.pmjdy.gov.in/scheme).
- You can open a PM Jan Dhan Yojana account at any bank.
- Complete the application form and provide all required documents before submitting them.
- If you have an Aadhaar Card, you won’t need any other documents to open the account. Your Aadhaar card will act as proof of your identity, age, and address. If your address has changed, you can provide a self-certified copy of the new address, and that’s enough.
Documents Required For PMJDY Account
- Aadhaar card, If you don’t have an Aadhaar card, you can use one of these documents as proof:
- PAN Card
- Passport
- Voter ID Card
- NREGA Card
- Driving License
- If any of these documents have your address, they can also be your address and identity proof.
- If you don’t have an Aadhaar card or any of the mentioned documents, you can still open a PMJDY account if the bank sees you as low-risk. In this situation, you should provide:
- An identity card with your photo, issued by Government Departments, Banks, or other recognized authorities.
- A letter from a gazetted officer, along with a verified photograph.
What is Jhan Dhan Darshak App?
It is a beneficial app for people interested in this scheme and was launched by the Government of India in the initiative of Jan Dhan Yojana to easily locate the nearest bank branches/post offices/ATMs/Bank Mitras.
Additionally, the government uses the app to locate villages without banking services. This way, even remote villages can access banking facilities to improve their financial knowledge and development.
PMJDY Interest Rate
The rate of interest under PMJDY varies from bank to bank and is typically based on the savings account interest rate offered by the respective bank. To find out the specific interest rate being offered under the Pradhan Mantri Jan-Dhan Yojana (PMJDY), you should inquire directly with your bank, as different banks may have different rates.
Death Benefit Eligibility
If the account holder unfortunately passes away due to any reason, the nominee mentioned on the account will receive a death benefit of Rs.30,000.
Exiting the Scheme
When the account holder turns 60 years old, they can exit the scheme.
Claim Settlement
- If the account holder passes away, a sum of Rs.30,000/- will be given to the person(s) nominated by the account holder. The risk coverage starts when the person turns 18 and continues until they reach 60 years of age. Eligibility ends when they turn 60, and they will leave the scheme on their 60th birthday.
- The process of settling claims will be handled by LIC offices in various locations. Here's how it works:
- The District Branch or Nodal Branch of the bank will collect the necessary claim documents and send them to the Pension & Group Scheme Units of LIC for claim processing.
- The claim amount will be given to the nominee mentioned in the bank account.
- The claim money will be deposited into the nominee’s bank account using APBS/NEFT for a smooth and efficient process.
FAQS on PMJDY Scheme
Can I open a joint account under Pradhan Mantri Jan Dhan Yojana?
Yes. PMJDY allows joint accounts, and you can open one with a family member or guardian by submitting the required documents.
If I have multiple PMJDY accounts, will I get insurance benefits for all?
No. Insurance coverage under PMJDY is provided for only one account, even if you have multiple accounts in different banks.
Can I apply for a higher loan amount under the PMJDY scheme?
Yes, you can request a higher loan amount. The bank will approve it only after checking your repayment history and account activity.
What is the interest rate on PMJDY accounts?
PMJDY accounts generally earn around 4% interest per year, but rates may change depending on bank policies and market conditions.
Can every family member join the PMJDY scheme?
No. Only one eligible member per household, usually the head of the family aged between 18 and 60, can open a PMJDY account.
What is a Small Account (Chota Khata) under PMJDY?
A Small Account is a basic PMJDY account opened without full KYC documents. It stays valid for 12 months until the required documents are submitted.
Who is a Bank Mitr under PMJDY?
A Bank Mitr is a banking correspondent who offers basic banking services in areas without branches. Retired staff or trained individuals often serve as Bank Mitrs.
Do PMJDY accounts require a minimum balance?
No. PMJDY accounts are zero-balance accounts, meaning you do not need to maintain any minimum balance.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
